The National Flood Insurance Program (NFIP) was created due to the lack of private insurance flood policies. The goal of the NFIP is to reduce the impact of flooding on public and private property. This is accomplished by subsidizing insurance policies for property owners, renters, and businesses to make them more affordable. The NFIP also encourages communities to adopt and enforce proper floodplain management practices and ordinances.

By participating in the NFIP, communities lower the cost of flood insurance for the entire community. Find out if your community is part of the NFIP.  

In October 2021, the NFIP will update its risk rating method. Known as Risk Rating 2.0, the "methodology leverages industry best practices and cutting-edge technology to enable FEMA to deliver rates that are actuarily sound, equitable, easier to understand and better reflect a property’s flood risk."

Many flood insurance policyholders may see their insurance rates reduced. Others will see increases. The new Risk Rating 2.0 will be rolled out in phases. 

Learn more about Risk Rating 2.0.

While the government underwrites NFIP flood insurance policies, NFIP policies are generally sold through private insurance agents. In some areas, primary flood insurance may be available through private insurers.

There are two types of policies: Direct and Write Your Own (WYO).

A Direct policy is one directly acquired from the Federal Emergency Management Agency (FEMA) through many insurers.

A WYO policy is acquired from FEMA authorized private insurers. 

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